Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1887-12-14
TARIFF AND SURPLUS.
The Presidents Message Devoted
to These Subjects.

20 These SUBJECTS. $<%%
Urging the Necessity of Revision Of the
Revenue as the Only Remedy for .
Dangerous Evl-Nstl,ods Suggest
ed by the Executive. 3.%
FULL TEXT OF THE MESSAGE.
WASHINGTON, Dec 6-The following is
the tull text Of President Cleveland's mes
cage, as read to both houses of Congress to-
day:
To THE CONGRESS OF THE UNITED STATES
You are confronted at the threshold Of your
Legislative duties with condition OF the Ma
tiOnal finances which imperatiVely demands Inn
mediate and careful consideration. =
The amount OF money annually exacted
through the operation of present laws, from the
exceeds the sum necessary to meet the expenses
of the Government
When we consider that the theory OF our m
enjoyment OF all the fruits Of his industry and
enterprise, with only such deduction as may
be his share toward the careful and economical
tects him, it Is plain that the exaction OF more
than this is indefeusible extortion, and a culpa-
BILE betrayal OF American fairness and justice.
This wrong. inflicted upon those who
bear the burden OF National taxatlon, like
other wrongs, multiplies q brood Of evil conse-
Quences. The public treasury, which should
tribute to ITS g.t,mate objects Of expenditure,
becomes d hoarding-pl Tor money needlessly
WlthdraWn from trade aud the peoples use,
thus gripping our National energies, suspend
ing our country's development, preventing in
vestment in productive enterprises, threaten
ing financial disturbance and inviting schemes
OF public plumber. This condition OF our
Treasury Is not altogether new; and it has
more than once OF late been submitted to tho
peoples representatives in Congress, who
alone can apply remedy. And yet the situa-
~ Nfpai rr
more than ever presaglng financial commissions
and widespread disaster.
= will not do to neglect this situation be.
GOA g It's dangers are not now palpably immi-
heIt and apparent They exist none the less
certainly, and await the unforeseen, unex-
pected occasion when suddenly they will be
On the soth day of June, 1885, the excess of
revenues over public expenditures, after COM
plying with the annual requirement OF the
Sinkng-fund act was S17,859, 735. "a: during the
yer ended June 30, 1866. such excess amounted
TO Ss9, 4e6, 54a20, and during the year ended
June ~, 1887, it reached the sum OF $aa 567, SA9
The annual contributions to the sinking fund
during the three years above specified, amount
ing in the aggregate to S13SOoSSs0.94, and de-
Quoted from the surplus as stated, were made
by calling in for that purpose outstanding 3 per
cent. bonds of the Government. During the six
months prior to June 50, 1887, the surplus rev.
lations, and it was feared the withdrawal OF this
great sum OF money needed by the people, would
SO affect the business of the country that the sum
OF 1854, 10 OF isuch surplus was applied 10 the
payment Of the principal and interest Of the
per cent. bonds still outstanding, and VIII CHI
were then payable at the option OF the Govern
affairs among the people still needing relief,
Immediately after the Goth day OF June, 1885,,
the remainder OF the per cent. bonds then
outstanding, amounting, With wi! a. principal and in
and applied to the slnkins-fund contribution
Tor the current fiscal year: Notwithstanding
these oper.tlons OF the Treasury Depart,
business circles not only continued
out increased, and absolute peril seemed at
hand In these clrcumst ,nces the contribution
to the sinking fund for the current fiscal year
was at once completed by the expend lture Of
27.6SA, 28s.55 in the purchase of Government
bonds not yet due being and ~. per centssinter-
est, the premium pad theron averaging about a
per cent. for the former aud s per cent. for the
latter. In addition to- this the interest accruing
during the current year upon the outstanding
bonded Indebtedness OF the Government was to
some extent anticipated, and banks selected as
deposilor es Of public money were permitted to
somewhat increase their deposits.
While the exped:ents thus employed to re-
lease to the people the money lying idle in the
treasury served to avert Immediate danger, our
sur; .lus revenues have continued to accumulate,
the excess for the present year amount ng on
the first day of December to $55,2 8, 7O1. 49, and
est mated to reach the sum OF S11aOO0, 100 on
the s9th OF June next, at which date it is ex-
pected that tn 9 sum, added to prior accumula-
e14o,Ooa00o.
There seems to be no assurance that with
such withdrawal from use Of the peoples
circulating medium our business may not in
the near future be subjected to the same
distress which was quite lately produced
lions Of our National Treasury should be
few and simple and while its best con.
ditton would be reached, I believe,
vate business interests, yet when, by perver-
sion OF its purposes, it idly holds money use
lessly snbtracted from the channels of trade,
there seems to be reason for the claim that
some legitimate means should be devised by
the Government toIrestore n an emergency.
without waste or extravaganza, such money 30
Its place among the people. ~ sH2*
II such an emergency arises there now exists
no clear and undoubted executive power OF re-
lief. Heretofore the redemption Of per cent.
bonds, which were payable at the option OF the
bursement OF the excess Of our revenues; but
these bonds have all been retired, and there are
no bonds out standsng the payment OF which we
have the right to insist upon. The contribu-
ton to the sinking fund which furnishes the Oc-
casion for expenditure in the purchase OF bonds
has been already n, for the current year. SO
n the present state OF legislation the only
pretense OF any existing executive power to re-
store at this time any part OF our surplus rev.
in the supposition that the Secretary OF the
Treasury may enter the market and purchase
the bonds Of the Government not yet due, at q
The Only provision OF law from which such
power could be derived is found in an appropri-
alton bill passed number OF years ago; and it
is subject to the suspic on that 1t was intended
as temporary and limited in it's application, in
stead OF comforting continui- g discretion and
authority. No condition ought to exist which
would justify the grant Of powe1to a single
official, upon his Judgment OF its necessity, to
withhold from or release to the business
OF the people, in an unusual manner, money
held in the Treasury, and thus affect, at his
will, the financial situation of the country; and
il t is deemed wise to lodge In the Secretary OF
the Treasury the authority in the present junct-
ure to purchase bonds, it should DO plainly
vested, and provided, as far as possible, with
such checks and limitations as will define this
officials right and discretion and at the same
time relieve him from undue responsibility.
In considering the question OF purchasing
bonds as a means OF restoring to circulation
the surplus money accommodating In the Treas
ury. it should be borne in mind that premiums
must OF course be paid upon such purchase,
that there may be a large part Of these bonds
held as investments which can not be pur.
chased at any price, and that complications
among holders who are willing to sell may un-
reasonably enhance the cost Of such bonds to
the Government. s..-%% ~, -s
It has been suggested that the present bond
ed debt might be refunded at less rate OF in.
terest, and the difference between the old and
new securities paid in cash, thus finding use
for the surplus in the Treasury The success
OF this plan, 1t 10 apparent, must depend upon
the volition Of the holders OF the present bOnds;
md IT, q not entirely certain thor tho T3nd1,oos